ASHON appeals to SEC on behalf of suspended members

….Raise issues on amended SEC Rules

The Association of Stockbroking Houses of Nigeria (ASHON) has appealed to the Securities and Exchange Commission (SEC) on behalf of dealing members suspended for inability to meet new capital base and the minimum operating standards (MOS).

The appeal was made in SEC’s office Abuja recently when the newly elected executive team of ASHON paid the SEC Director General a courtesy call.

ASHON chairman, Mr. Onyenwechukwu Patrick Ezeagu, who led the delegation, appealing to the apex market regulator on behalf of dealing members suspended by the SEC and the Nigerian Stock Exchange (NSE) due to failure to meet up with the new minimum operating standard (MOS) and new capital base, called for additional grace period of six months for the suspended members.

The ASHON leader also noted with concern the proposed amendment of Rule 56(1) – Function of Brokers (Harmonization of Registration requirement for incidental functions), clauses he said would disqualify brokers from providing investment advice to their clients or the Public.

ASHON, seeking for education on the thinking behind the proposed amendment, called for modification of the proposal.

The call, ASHON explained was based on the backdrop of value addition provided by brokers/ dealers in rendering investment advice to their clients. They, however, argued that a lot of stock broking houses had well-established research desks which not only broadcast market information on a continuous basis but also carry out in-depth analysis as well as providing opinions to complex financial issues to their clients.

The stockbrokers’ body, however, expressed dismay on the Federal Government’s sole commitment on monetary policy for macroeconomic management to the disadvantage of the capital market, even as it accepted to take a critical look at the Investment and Securities Tribunal funding being proposed by the SEC and NSE.

The Director –General, SEC’ Mounir Gwarzo, earlier in his address restated to the ASHON team the commission’s resolve to promote the development of Commodity Exchanges in the country.

The Director General said the commission was willing to support the Lagos Commodities & Futures Exchange being midwived ASHON.

On the suspension of some of their members by the NSE & SEC on account of deficiency in Minimum Operating Standard (MOS) compliance as well as diminution in value of minimum the DG insisted on a three months grace period, aligning with their argument that stock brokers carry equities in their balance sheet and prices of equities have gone down thus affecting their capital.